Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Procter and Gamble

No description
by

Sarah Mathew

on 1 December 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Procter and Gamble

Quick
Procter and Gamble
The company has one of the largest and strongest portfolios of brands, for example:
Products
Founded:
1837
Founders:
William Procter & James Gamble
Industry:
Consumer Packaged goods
Headquarters:
Cincinnati, Ohio, U.S.
Area Served:
Worldwide
Chairman, President and CEO:
Alan Lafley
Stock Price:
(11/11/14) $ 89.45
History
Financial Analysis
Key Financial Ratios
Third Quarter 2014
2013 Year End
Financial Leverage
Debt-Equity
2.12
.80

.29
2.08
.94
.29
Current Price: $89.45
Global Business Units (GBUs)
Top 3 Competitors
Unilever
Johnson & Johnson
Kimberly-Clark Corporation
Core Strengths
P&G focuses on five core strengths required winning in the consumer products industry:

Consumer Understanding
Innovation
Brand-Building
Go-to-Market Capabilities
Scale

"We are designed to lead in each of these areas".
P&G TODAY
P&G: Thank You, Mom
Sochi 2014
Olympic Winter Games
P&G's Internationalization Process
1990's Global reach: 300+ brands in around 180 countries
Lafley, CEO, ordered switch from “Global Product Structure” to “Transnational Global Strategy"

P&G Thank You, Mom:
Pick Them Back Up
Demonstrates the company’s efforts to increase brand awareness
Global: Sochi 2014 Olympic Winter Games
Equity Advertising: emotional connection to the brand
Appeal to a universal emotion: mother’s love
Strengths
SWOT ANALYSIS
Cross-Functional Coordination
Logistics, supply-chain, manufacturing all coordinated across the nations
Ability to lower costs
Local managers can quickly adjust to local tastes
Inter-function Coordination:
Need communication among functional, business, divisional, and corporate-level managers
Prevents information distortion in a global market
Beauty, Hair & Personal Care
Baby, Feminine & Family Care
Fabric & Home Care
Health & Grooming
Current Ratio
Agenda
Company Overview
Competitors
Financial Analysis
Internationalization Process
SWOT Analysis
Business Strategies
Recommendations
Transnational Global Strategy
Specialization based on brand type and economies of scale
4 major Global Business Units
Easily adapts to local tastes
Front-back hybrid matrix organization
Various levels of management in the GBUs

Strong brand presence-
24 billion dollar brands

Large market share-#1 CPG company

Global leader-present in 180 countries

Strong relationships with global retailers

Excellent Innovators
Excellent marketing/advertising
Lack of economy priced products
Lack of premium products for Chinese market
Too reliant on developed/mature markets
Beauty sector mainly appeals to women

SWOT ANALYSIS
Weaknesses
Opportunities
SWOT ANALYSIS
Men’s health and beauty-growing market
Expand emerging market product lines-86% of world population
Increase Chinese market share
Usage of digital media and social media

SWOT ANALYSIS
Threats
Local competition in emerging markets
Eroding brand loyalty in CPG industry
Threats from main competitors in emerging markets-Colgate-Palmolive, L'Oreal, Unilever
Lack of organic/environmentally friendly products

Emerging Changes in the
Global Business Environment
Focus on digital advertising and social media
Requires effective sales of brands to major corporations with developed web presence
More potential for global consumption
DIGITAL CONSUMERS
BILLION NEW MIDDLE-CLASS CONSUMERS IN EMERGING MARKETS
Need to adjust pricing and tailor products to new target market
CONSUMERS LOOKING FOR MORE SUSTAINABLE PRODUCTS
Need to develop this brand image

40/20/10 Initiative
Business Strategies
Focus research on 40 largest businesses-50% of sales
Focus on 20 most profitable brands
Invest in 10 emerging markets-critical to company growth
Business Strategies
Billion Dollar Brands
Focus on billion dollar brands-each generate $1 billion-$10 billion annually
Aug 2014-cut 100 brands to concentrate on 80 remaining brands: 95% of profits
More profitable to invest resources in rather than "placeholder" brands
Focus on extending best brands- Gillette into Gillette Fusion
Business Strategies
Emerging Markets
Emerging markets currently 34% of revenue, said to increase to 50% by 2020
Localize products for international markets: Tide detergent for hand washing
Continue to drive strong sales growth in Latin America
Increasing distribution channels
20 new Manufacturing facilities

Business Strategies
Developed Markets
Focus on high-margin oral care, skin care, and shaving tools to drive overall growth
Decline of Pantene in Western Europe and U.S.
Plan to position Pantene as more premium brand with Nature Fusion line
Expand e-commerce sales
Eco-friendly packaging-enhance image
Business Strategies
Innovation
Innovation focused-developed a “disruptive innovation college” in 2007
2000-15% of innovation efforts met profit and revenue targets; 2011-increased to 50%
2011-most productive innovation year in the company’s history

Recommendation 1: Enter New Markets
Get into a different product marketplace
Sustainable products
Cleaning products that are energy efficient

Men’s beauty
Look into acquiring smaller brands

Both address weakening profits

Recommendation 2:
Reduce Cannibalization of Products
Much diversity
The company has sold many products already
Increase research and development to find what exactly works in each country and stick to it

Catie Harrell, Karam Kaisar, Vikas Tailor, Sarah Mathew
ANY QUESTIONS?
If not...
Why is Procter & Gamble so successful?
What are some ways the company can improve?
Do shareholders care about international sales? Why?
Full transcript